Kuaishou Technology: From Breakneck Growth to Sustainable Profitability
- Administrateur
- May 15
- 2 min read
Updated: May 21
Strategy and Market Position
Kuaishou is a Chinese short‑video and livestreaming platform built as a community‑centric social network. Revenue comes mainly from virtual gifts, online marketing services (advertising) and e‑commerce commissions.The company operates two core pillars:
Livestreaming – funded by the sale of virtual gifts.
Advertising & marketing – in‑feed ads, e‑commerce partnerships and brand‑solution formats.
Adjacent businesses (gaming, local services, etc.) round out the ecosystem. Domestically, Kuaishou’s chief rival is Douyin (ByteDance). It differentiates itself with high user engagement—over 100 minutes per day on average in 2021. International versions (Kwai/SnackVideo) remain investment phases, though their losses narrowed sharply in 2024.
Since the IPO, priorities have shifted from unchecked growth to margin optimisation. After years of net losses, Kuaishou restructured costs, fine‑tuned its recommendation algorithm and slowed overseas expansion. In 2023 it generated domestic operating profit of RMB 11.4 billion and recorded a net‑profit milestone, ushering in a “new era of sustainable profitability.”
Financial Performance
Users and Monetisation
DAU: 308 m (2021) → ~400 m (2024).
MAU: 544 m → ~710 m over the same span.
Time spent: > 110 min/day per user.
E‑commerce GMV: RMB 680 bn (2021) → RMB 1 389 bn (2024).
Advertising now contributes 57‑58 % of revenue, livestreaming roughly 30 %, with the remainder from other services. The operational leverage is clear: in 2024 net profit grew 140 % on an 11.8 % revenue increase.
Key Risks
Heavy dependence on advertising cycles (≈ 85 % of revenue).
Intensifying regulatory scrutiny of content moderation and youth protection.
Ongoing need to cap user‑acquisition costs to safeguard margins.
Stock Performance and Ownership
Share Price HistoryListed at HK$115 in February 2021, the stock briefly peaked at HK$345 before sliding to ~HK$53 by May 2025 (‑80 % from the high). The drop reflects caution toward Chinese big tech despite Kuaishou’s profit turnaround. Market capitalisation now sits near HK$223 bn (≈ US$28 bn), far below its 2021 zenith.
Ownership StructureCo‑founders Su Hua and Cheng Yixiao retain over 50 % of voting power via Class B shares. Tencent remains a strategic partner with about 19 % of ordinary shares; other investors (funds, executives) hold the remainder.
Conclusion
Kuaishou has shifted from hyper‑growth to a profit‑focused model, cementing domestic market share and trimming overseas losses. Recent results confirm meaningful operating leverage, yet valuation remains subdued due to economic and regulatory uncertainties. The coming quarters will test its ability to preserve margins, pursue measured international expansion and meet stricter compliance—key hurdles before investors fully credit its new profitability paradigm.
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